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The Causes of Market Failure
Hayek contends that it is this transmission of information through prices that is so invaluable, and this process is less costly than alternative mechanisms of transmitting information such as state planning. However, economists have come to realize that although the information signaling role of price is extremely important, this mechanism is not free of cost.
These views argue that the role of modern business has changed, and the society expects business to adhere to certain moral and social responsibilities. Market research is of equal importance to a business. Our economy is very diverse and constantly changing. A business must study the environment and population so as to comply with the consumers buying patterns, needs and wants. A company can do this through market segmentation, demography, and by the use of questionnaires and surveys. Market research can be carried out by the use of market segmentation, which is the dividing up of the market into similar groups so that each group may be studied and carefully examined which I have covered earlier.
- Humanity Is the Greatest Failure of Evolution
- Let People Decide Their own Fate: Free Market Bioethics
- The Causes of Market Failure
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